The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
Any time a company states that its presence on the market consists of dividend stocks, it is actually referring to that it has opted to pay out a certain percentage of its earnings to its shareholders regularly.
In other words, any owner of a company’s dividend stock now has the right to an income stream just for the fact of being one of the company’s shareholders. Usually, as companies get more successful over time, they organize dividend plans for their shareholders.
In the end, it is obvious why any investor would be interested in finding worthwhile dividend stocks. They’re great risk-balancing opportunities for your portfolio, as well as a steady source of income without the need to sell your stocks right away.
But where can someone start investing in worthwhile dividend stocks? Here are some recommendations.
Altria Group (NYSE: MO)
Altria is a company with many business activities. Its primary focus is cigarette manufacturing, but it has other ventures such as a wine subsidiary, chewing tobacco lines and even some stakes in separate beer companies.
Its most popular product? The Marlboro cigarette brand.
Over the years, Altria has been a company that has well-managed itself to counter tobacco sales’ declining nature.
How? By raising their prices anytime their sales lower. That way, Altria’s revenue has been able to grow in the past decade. But it doesn’t stop there in the long-run.
Altria has a 10-year plan to move out from the cigarette business and towards alternate healthier products for their current customer base.
By having a certain degree of ownership in other companies with ventures of their own in the e-vapor world and nicotine pouch business, they’re more than well-covered when it comes to managing said transition while still offering quality products.
After considering everything, Altria can easily be considered a company capable of maintaining healthy percentages of dividend yields for both the short and the long-run. As of today, its current dividend yield stands at 6.8%.
Verizon (NYSE: VZ)
Verizon is one of the most prominent names in the telecommunications business. In terms of popularity alone, it stands alongside other big fish like AT&T (NYSE: T) and T-Mobile US (NASDAQ: TMUS).
It is easy to understand why, as their primary business venture is providing a wireless network for their customers to access the internet and communicate with each other with ease and range.
Even if the activities related to building and maintaining a decent and reliable wireless network are expensive, that should be little to no bother for the company. Once said networks go live, they instantly turn into cash machines.
In Verizon’s case, their business expenses were around $18 billion last year, but it eventually led them to generate tens of billions in income that same year. And in their investors’ case, it has led to an attractive 4.5% dividend yield.
In the end, Verizon is a company that can produce large amounts of profit, as well as one that can operate a reliable business while also maintaining it for the long-run.